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Carry Trade

Written by Hugh, on July 25th, 2007

I’ve been doing a carry trade in my demo account and it has been working pretty well, so I think I will implement it into my live trading account. I’ll probably start off with just one 1k lot at a time and ease into it.

I have had 5 regular 100k lots on in NZD/JPY right now in my demo account since 7/17. I have a total MTM P/L of $1,413.96. The interest I earned on the trade so far has been $324.74. Not a whole lot, but the interest alone is 3% of the opening amount of $10k.

I have been looking at using Bollinger Bands with the %R to signal entries. On paper it looks pretty good, so I’ll let it rip in my live account on a very small basis and see what happens. As long as the carry trade doesn’t totally unravel, which it doesn’t seem like it will in the near future, I should be OK.

This also goes to show the kind of numbers that I will be working with when I open a regular sized trading account!!

nzd.png

 


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Hugh

Wow, what happened last night? The %R finally broke below the lower line and it looks like a good area to look for a buy.

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gpip

I am back in the game! I had some funds left in my FXsol account so I am following your lead with the carry trade. Works for me because I don't monitor forex too much. I got a buy limit for 96.90 on the NZD/JPY

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